This is actually a fairly clever and atypical approach to hiring. I agree that the meaning of "hacking" is often stretched, and maybe this is one of those cases, but it's hardly the worst.

(However, like the Microsoft/Google brainteaser interviews, I could see these little extraneous tasks getting pretty annoying if they became widespread.)

Since you asked for it:

http://www.phys.lsu.edu/faculty/gonzalez/Teaching/Phys7221/v...

David Jones tries to create an unrideable bicycle (and nearly fails).